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The government exempted entrepreneurs of categories 1 and 2, and other self-employed persons from a single social security tax.
Ukrainian Minister of Social Policy Maryna Lazebna says the Pension Fund in 2020 fell short of UAH 4 billion (US$143 million) as a result of quarantine benefits for individual entrepreneurs, in particular, a new social assistance program for their children.
That's according to a statement published by the ministry's press service on its website on March 29.
In addition, the government exempted entrepreneurs of 1 and 2 categories and other self-employed from paying the single social security tax, while non-payment periods were credited to their insurance record.
"We deliberately got into it, knowing that we would fall short of funds in the Pension Fund's budget. The cost of the issue is about UAH 4 billion, but this wasn't the main thing," the press service quoted Lazebna as saying.
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On April 13, the Verkhovna Rada, Ukraine's parliament, passed amendments to the law on the 2020 national budget, according to which a special Fund worth UAH 64.7 billion (US$2.3 billion) was created.
The government has allocated from this fund UAH 1.6 billion (US$57.2 million) in assistance to children of individual entrepreneurs working within the simplified taxation system, that is UAH 2,000 (US$71.5) was allocated for each child under 10 years.
In January 2021, the Pension Fund completed payments worth UAH 3.6 billion (US$128.7 million) in one-time financial assistance to entrepreneurs in the amount of UAH 8,000 (US$286).